VT 529 College Savings

May 29 is College Savings Day!

Celebrate with VHEIP, and get ready for a full summer of fun!

CHAMP's Kids Cub has partnered with VHEIP and Burlington, VT Mom's Blog for a summer-long effort to encourage more families to begin to save for college. And - to start off the festivities - in honor of National 529 Day this month (on May 29, get it?), you can enter a statewide drawing to win a $529 deposit in a Vermont 529 College Savings account!

During the month of May, any Vermont resident or VHEIP account owner can enter to win $529 in a VHEIP college savings account, as part of our state's celebration of National 529 Day. Also, through an annual partnership with the Vermont Association of Hospitals and Health Systems, every baby born on May 29, 2017, will receive $100 in a VHEIP account.

Why should my child participate?

By opening a college savings account - even with just $25 to start - you'll be creating opportunities for your child's future. All Vermonters will need some form of education or training after high school to be qualified for Vermont's future jobs. Research shows that students from families who save even small amounts (less than $500!) for education are three times more likely to go on to and complete college or other training after high school.

Come to the ballpark on CHAMP's Kids Club nights and get your free pink piggy bank, a favorite of CHAMP's and everyone else!

All summer long kids can pitch for cash at the ballpark - college cash, that is! At every home game, one lucky Vermont kid will see how fast s/he can pitch and that's how much will go into a VHEIP account. For example, 100 mph = $100 VHEIP account, with a minimum contribution of $25!

When you pick up your piggy bank, enter your name into a raffle for $100 VHEIP account. There are two "Outstanding Kids" nights at Centennial Field, too. Students nominated as part of the Lake Monsters Outstanding Student Program should make sure to come out to the park and enter the special drawing for a $100 VHEIP account. Find out more about what's happening this summer at www.vheip.org/CHAMP.

But right now, be sure to enter the drawing to win $529 in May!

What is a 529 Plan?

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as "qualified tuition plans," are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. VHEIP is one of the few 529 plans in the country that provides a tax credit to investors. Vermont taxpayers receive an income tax credit of 10% of the first $2,500 they put into their VHEIP account for each beneficiary each year, up to a maximum tax credit of $250 per taxpayer per beneficiary each year ($500 tax credit per beneficiary, if filing jointly).